AirTran Holdings (AAI)

We accrue a liability for the estimated incremental cost of providing free travel for awards earned under our A+ Rewards Program based on awards we expect to be redeemed
on us or the contractual rate of expected redemption on other carriers. Incremental cost includes the cost of fuel, catering, and miscellaneous direct costs, but does not include any costs for aircraft ownership, maintenance, labor or overhead
allocation. We adjust this liability based on points earned and redeemed, changes in the estimated incremental costs, and changes in the A+ Rewards Program.

We also sell points in our A+ Rewards Program to third parties, such as credit card companies, internet service providers and car rental agencies. Revenue from the sale of points is deferred and recognized as passenger revenue when
transportation is expected to be provided, based on estimates of its fair value. The remaining portion, which is the excess of the total sales proceeds over the estimated fair value of the transportation to be provided, is recognized in other
revenue at the time of sale. A change to the time period over which the points are used (currently one to two years), the actual redemption activity, or our estimate of the amount or fair value of expected transportation could have a significant
impact on our revenue in the year of change as well as future years.

Frequent Flyer Program

STYLE="margin-top:6px;margin-bottom:0px">We accrue a liability for the estimated incremental cost of providing free travel for awards earned under our A+ Rewards Program based on awards we expect to be redeemedon us or the contractual rate of expected redemption on other carriers. Incremental cost includes the cost of fuel, catering, and miscellaneous direct costs, but does not include any costs for aircraft ownership, maintenance, labor or overheadallocation. We adjust this liability based on points earned and redeemed, changes in the estimated incremental costs, and changes in the A+ Rewards Program.

SIZE="2">We also sell points in our A+ Rewards Program to third parties, such as credit card companies, internet service providers and car rental agencies. Revenue from the sale of points is deferred and recognized as passenger revenue whentransportation is expected to be provided, based on estimates of its fair value. The remaining portion, which is the excess of the total sales proceeds over the estimated fair value of the transportation to be provided, is recognized in otherrevenue at the time of sale. A change to the time period over which the points are used (currently one to two years), the actual redemption activity, or our estimate of the amount or fair value of expected transportation could have a significantimpact on our revenue in the year of change as well as future years.

We accrue a liability for the estimated
incremental cost of providing free travel for awards earned under our A+ Rewards Program based on awards we expect to be redeemed. We adjust this liability based on points earned and redeemed as well as for changes in the estimated incremental
costs.

We also sell points in our A+ Rewards Program to third parties, such as credit card companies, internet service providers and car rental agencies.
A portion of these point sales is deferred and recognized as passenger revenue when transportation is provided, based on estimates of fair value. The remaining portion, which is the excess of the total sales proceeds over the estimated fair value of
the transportation, is recognized as other revenue at the time of sale.

We accrue a liability for the estimated
incremental cost of providing free travel for awards earned under our A+ Rewards Program based on awards we expect to be redeemed. We adjust this liability based on points earned and redeemed as well as for changes in the estimated incremental
costs.

We also sell points in our A+ Rewards Program to third parties, such as credit card companies, internet service providers and car rental agencies.
A portion of these point sales is deferred and recognized as passenger revenue when transportation is provided, based on estimates of fair value. The remaining portion, which is the excess of the total sales proceeds over the estimated fair value of
the transportation, is recognized as other revenue at the time of sale.

We accrue a liability for the
estimated incremental cost of providing free travel for awards earned under our A+ Rewards Program based on awards we expect to be redeemed. We adjust this liability based on points earned and redeemed as well as for changes in the estimated
incremental costs.

We also sell points in our A+ Rewards Program to third parties, such as credit card companies, internet service providers and car
rental agencies. A portion of these point sales is deferred and recognized as passenger revenue when transportation is provided. The remaining portion, which is the excess of the total sales proceeds over the estimated fair value of the
transportation to be provided, is recognized in other revenue at the time of sale.

We accrue a liability for the
estimated incremental cost of providing free travel for awards earned under our A+ Rewards Program based on awards we expect to be redeemed. We adjust this liability based on points earned and redeemed as well as for changes in the estimated
incremental costs.

Points under our A+ Rewards Program may also be earned using our branded credit cards. A pro-rated portion of revenue earned from this
credit card is deferred, based on estimates of fair value of tickets to be redeemed and recognized as passenger revenue when transportation is likely to be provided. Amounts received in excess of the tickets fair values are recognized in
income currently.

We accrue a liability for the estimated incremental cost of providing free travel for awards
earned under our A+ Rewards Program based on awards we expect to be redeemed. We adjust this liability based on points earned and redeemed as well as for changes in the estimated incremental costs.

Points under our A+ Rewards Program may also be earned using our branded credit card. A
pro-rated portion of revenue earned from this credit card is deferred and recognized as passenger revenue when transportation is likely to be provided, based on estimates of fair value of tickets to be redeemed. Amounts received in excess of the
tickets fair values are recognized in income currently.